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Marcellus Drilling News
  • Industrywide Issues | Regulation

    Trump Signs Exec Order Targeting EPA “Waters of the U.S.” Rule

    March 2, 2017March 1, 2017

    In May 2015, Obama’s rogue Environmental Protection Agency (EPA), along with the Obama U.S. Army Corps of Engineers (USACE), released a finalized rule clarifying what “Waters of the United States” (WOTUS) means vis-à-vis what can be regulated under the federal Clean Water Act (see EPA Power Grab: Redefines Waters of the U.S. to Include Everything). Essentially the rule change redefines everything down to mud puddles (no, we’re not exaggerating) as subject to the federal Clean Water Act. In October 2015 a federal judge stopped WOTUS from going into effect, while it’s litigated (see Sixth Circuit Court Stops EPA from Implementing WOTUS Anywhere). It took a year, but in November 31 states along with other entities filed briefs with the 6th U.S. Circuit Court of Appeals opposing the rule (see 31 States Ask Court to Dump Obama WOTUS Rule as Unconstitutional). It now looks like we won’t have to litigate it out after all. Yesterday, fulfilling a campaign promise, President Trump signed an Executive Order directing the EPA to reconsider WOTUS. Among the many at the signing ceremony was the new Administrator of the EPA, the marvelous Scott Pruitt–who has pledged to move forward immediately with rolling back WOTUS…
    Read More “Trump Signs Exec Order Targeting EPA “Waters of the U.S.” Rule”

  • Industrywide Issues | Regulation

    Time to Swing the Ax at the EPA – Let the Firings Begin!

    March 2, 2017March 1, 2017

    Less than two weeks ago Oklahoma Attorney General Scott Pruitt was confirmed to be the new Administrator of the Environmental Protection Agency (see Scott Pruitt Confirmed to Lead EPA – Swamp Draining Begins). As we observed at the time, “A labor union representing more than 9,000 EPA employees actively opposed Pruitt’s confirmation. We personally think those 9,000 employees should be fired.” Perhaps our wish is coming true! Well, at least in part. President Trump is proposing to ax 24% off from the EPA’s annual, way overinflated budget. The speculation is that the new budget will result in firing 20% of the EPA’s 15,000 employees. Hooray! It’s about time. Let’s see how the insular bureaucrats who love to tell us all what to do like getting an unemployment check…
    Read More “Time to Swing the Ax at the EPA – Let the Firings Begin!”

  • Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | Ohio | Pipelines | Statewide OH

    Federal Judge Lets Rover Enter Most OH Properties for Tree Clearing

    March 1, 2017March 1, 2017

    On Friday, Feb. 3, the Federal Energy Regulatory Commission (FERC) gave a final approval for Energy Transfer’s Rover Pipeline project–a $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada (see ET Rover Pipeline Gets Final Approval by FERC). Rover immediately began cutting down trees along the path in Ohio, on property where landowners have signed easements and voluntarily granted access. However, some landowners, either signed or unsigned, have not yet granted access. So Rover went to court, seeking eminent domain declarations (see Time’s Up – Rover Pipe Uses Eminent Domain on Holdout OH Landowners). Yesterday a federal judge granted Rover a preliminary injunction that allows the company to enter most properties–at least for those who have already signed or are actively negotiating with Rover. There are a few holdouts (21 owners of 15 parcels) where certain legal hoops still need to be jumped through–but they will also soon have to allow Rover access. What are last minute offers by Rover to landowners for easements? Rover isn’t saying, but some landowners are mentioning $70 to $80 per linear foot as a good number…
    Read More “Federal Judge Lets Rover Enter Most OH Properties for Tree Clearing”

  • Electrical Generation | Energy Services | Industrywide Issues | Millennium Pipeline | New York | Orange County | Pipelines | Regulation

    Millennium Asks FERC for OK to Cut Trees in NY w/o DEC Permits

    March 1, 2017March 1, 2017

    New York State is a hopeless, corrupt mess. MDN previously reported on a $900 million natural gas-fired electric generating plant coming to Orange County, NY (see Orange County, NY Marcellus-Fired Electric Plant OK’d by Judge). The CPV (Competitive Power Ventures) Valley Energy Center project is being opposed by local anti-drilling ninny nannies, including Hollywood star James Cromwell. No matter. It’s already under construction. The problem now is getting a 7.8 mile pipeline, an off-shoot pipeline from the mighty Millennium Pipeline, built to the plant to supply the natural gas it will need to run. In November the Federal Energy Regulatory Commission (FERC) approved the short pipeline (see FERC Approves Pipeline to Orange County, NY NatGas Power Plant). However, as with the Constitution Pipeline, the Cuomo Dept. of Environmental Conservation (DEC) is intentionally blocking this pipeline using delays. Millennium is not, like Williams did with the Constitution, sitting on its hands waiting for the DEC. The Millennium is aggressively pushing the DEC to grant the necessary water crossing permits and sued the DEC in January to make it happen (see Millennium Pipeline Sues Cuomo’s Corrupt DEC Over Expansion Delay). As with other such projects, Millennium is playing beat the clock with respect to cutting down trees before March 31. After that date federal law prohibits large-scale tree removal in order to protect roosting bats (don’t ask). Millennium, we are happy to report, continues to push aggressively. They’ve asked FERC for permission to cut down trees not on or near swamps, er a, wetlands, without having state permission in hand to do so. In other words, Millennium is asking FERC to put its boot on the neck of the DEC and push. Love it!…
    Read More “Millennium Asks FERC for OK to Cut Trees in NY w/o DEC Permits”

  • Energy Companies | PDC Energy

    PDC Changes Course, Delays More Utica Drilling in 2017

    March 1, 2017March 1, 2017

    PDC Energy, a driller in the Wattenberg Field in Colorado and the Utica in Ohio, paused their Utica drilling program in 2015 (see PDC Energy Pushes Pause Button on OH Utica Drilling for 2015). In December 2015, the company announced they would restart Utica drilling in 2016 with plans to drill five wells (see PDC Energy to Restart OH Drilling in 2016, Drilling 5 Utica Wells). Indeed they did reactivate their program, in a much-scaled-back fashion, in 2016. One of the Utica wells PDC drilled, the “Neff” well, came online earlier than expected and began producing in 2Q16 (see PDC Energy 2Q16: Utica Program Active Again, Neff Well Online). However, another shale play has turned the head of PDC–the Permian Basin in Texas. PDC released their plans for 2017 in December and said they plan to drill two more Utica wells in the second half of 2017 and spend just $18 million to do it, spending the bulk of their money in the Permian and Wattenberg (see PDC Releases 2017 Plans – Drilling Just 2 Utica Wells in 2H17). The plan to drill two Utica wells this year is now mothballed. PDC released their full 2016 update yesterday and as part of that update, says they have now delayed any Utica drilling in 2017, preferring instead to chase oil in Texas and Colorado…
    Read More “PDC Changes Course, Delays More Utica Drilling in 2017”

  • Industrywide Issues | Pennsylvania | Statewide PA | Taxation

    Allegheny Institute Exposes Wolf’s Severance Tax as a Disaster

    March 1, 2017March 1, 2017

    The Allegheny Institute exists to conduct research, education and advocacy work in a mission to defend taxpayers and businesses against burdensome taxation, inefficiency and intrusiveness of an ever expanding government. That’s a pretty tall order because government–at all levels–is always expanding, like a voracious monster. Think of the Allegheny Institute as a mini version of the Heritage Foundation–focused on Pennsylvania. Last week the Institute published a new policy brief dealing with the latest severance tax proposal by PA Gov. Tom Wolf. This is a think piece–but not overly heavy. It is quite readable (within a few minutes) and delivers food for thought. As the author points out, you can change to a severance tax from an impact fee (i.e. tax), but will you really reap all of the revenue claimed? Politicians like Wolf often gloss over the economics. Currently, the impact fee is levied on drillers. A severance tax, if enacted, would (in many/most cases) be deducted as an expense from royalty checks, placing the burden for the tax on landowners–and lowering their income, which means less in the way of state income tax revenues. The severance tax proposed by Wolf, when considered honestly, is nothing short of a disaster…
    Read More “Allegheny Institute Exposes Wolf’s Severance Tax as a Disaster”

  • Anti-Drilling/Fossil Fuel | Health Impacts | Industrywide Issues | Pennsylvania | Research | Statewide PA

    Fake “Report” Claims 9K Health Complaints in PA from Fracking

    March 1, 2017March 1, 2017

    A fake report recently issued by the anti-drilling, radically left and biased Public Herald (populated with activists masquerading as “journalists”) claims that some 9,400 residents in Pennsylvania have filed complaints that fracking has caused them ill-health in one way or the other. It is, according to anti-drillers, a public health “crisis.” How do we know this so-called report is TOTAL BS? Look at who wrote it, and look at who funded it: community organizers wrote it, the Heinz Foundation funded it. This is another sterling example of Joseph Goebbels-like propaganda. The Harrisburg Patriot-News allowed one such community organizer/anti-fossil fueler to run an article on the opinion-editorial page touting the report as legitimate. You can fool some of the people some of the time…
    Read More “Fake “Report” Claims 9K Health Complaints in PA from Fracking”

  • Energy Services | Industrywide Issues | New York | Pipelines | Statewide NY | Williams

    Binghamton Radio Show Highlights NY Support for Constitution Pipe

    March 1, 2017March 1, 2017

    You may recall that in April 2016, New York’s anti-drilling governor, Andrew Cuomo, decided he would cave to pressure from radical environmentalists once again and block the building of the federally-approved Constitution Pipeline (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). The Constitution is a 124-mile pipeline will move 650 million cubic feet (MMcf) of natural gas per day from Susquehanna County, PA to the middle part of New York State, where it will connect with two other pipelines. Cuomo’s toadies at the Dept. of Environmental Conservation (DEC) denied the Constitution the permits it needs to cross creeks and swamps. After it had been approved nearly two years ago by FERC, the DEC’s action was finally enough for Williams and the other partners in the project, who promptly sued NY in federal, NOT state, court (see Williams Sues NY Over Constitution Pipe – DEC May Lose Authority). The court venue is important, because in NY our court system at the highest level is corrupt–the governor appoints judges and those judges like their big-salary jobs and want to get reappointed, so they “decide” cases the way Andy wants them decided (see Shale Drilling in NY is Over – High Court Upholds Town Bans). We’ve predicted, repeatedly, that the NY DEC runs the very real risk of being removed from the decision process when it comes to federally-approved pipeline projects. If they lose the Constitution case, they will no longer have a role to play. The case went to court last November (see Constitution Pipeline Case Goes to Court in 2 Weeks, Briefs Filed). A decision in the case is due sometime this spring. It could come at any time. In the run-up to a decision, the 70,000+ member Joint Landowners Coalition of New York hosted a radio program a few weeks ago to discuss the Constitution project and the enormous support it has in Upstate NY…
    Read More “Binghamton Radio Show Highlights NY Support for Constitution Pipe”

  • Anti-Drilling/Fossil Fuel | Dominion Energy | Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Tompkins County

    NY State Legislator Tries to Derail Dominion New Market Project

    March 1, 2017March 1, 2017
    NY Assemblywoman Barbara Lifton – anti-drilling zealot

    In June 2014, MDN told you about the Dominion New Market Project–a project that will build two new compressor plants and upgrade one other compressor station in upstate New York–to help flow more abundant, cheap and clean-burning Marcellus Shale gas from Pennsylvania (and beyond) into the northeast (see Dominion Asks FERC for New Compressors in Upstate NY, WV). The project is projected to cost $159 million and provide 112,000 dekatherms per day (Dth/d) of extra natural gas capacity along ~200 miles of existing Dominion pipeline across upstate New York. The existing Dominion pipeline runs through the Horseheads, Ithaca, Syracuse and Albany areas. In March 2015 MDN friend Andy Leahy wrote about the pitched battle antis waged against the project (see NY Antis Flood FERC in Fight Against Dominion’s New Market Project). The antis were unsuccessful. The Federal Energy Regulatory Commission (FERC) approved Dominion’s New Market Project in October 2015 (see FERC Approves Expansion of Dominion Pipeline in Upstate NY). And then a real miracle happened. The New York Dept. of Environmental Conservation (DEC) approved the New Market compressor stations on Dec. 23, 2016 (see Miracle! NY DEC Approves Dominion’s New Compressor Stations). Barbara Lifton, an eco-left Democrat from Ithaca who serves in the New York Assembly, is now trying a last minute, very desperate attempt to stop the project from proceeding. Two weeks ago Lifton sent letters to both FERC and the DEC, hoping she can (ab)use her position to pressure one or the other (or both) to delay the project, which is the antis’ first step in killing a project…
    Read More “NY State Legislator Tries to Derail Dominion New Market Project”

  • Anti-Drilling/Fossil Fuel | Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Pennsylvania | Susquehanna County

    Anti Doesn’t Like Cabot O&G Donating Milk to Poor People in PA

    March 1, 2017March 1, 2017

    Cabot Oil & Gas is one of the premier drillers in the Marcellus Shale. They drill in a single Pennsylvania county–Susquehanna County. They consistently have 15 of the top 20 producing shale wells in PA. By our back-of-the-envelope estimation, Cabot, all by itself, drilling in one county, delivers something like 3% of all the natural gas produced in the entire country! It is an amazing story. What’s even more amazing is the big heart the company has. Woven into the Cabot DNA is giving back to the communities where they drill. It would take several posts to recount all of Cabot’s largess. We’ll mention just two cases. In 2012 Cabot donated $2 million and helped raise another $2.2 million (for a total of $4.2 million) to help build a new physicians clinic/hospital in Montrose, PA (see Cabot Effort Raises $4.4 Million for PA Physicians Clinic). In 2014, Cabot donated $2.5 million to a local college, to help build its School of Petroleum & Natural Gas (see Cabot Oil & Gas Does it Again – $2.5 Million Gift to Lackawanna College). Believe us, there are MANY more instances of Cabot donations in cash and volunteerism from its employees. Great company. Here’s one of the latest: At the end of last year, Cabot funded a new program in Susquehanna County called “Fill a Glass with Hope.” The program is a partnership formed among Feeding Pennsylvania, the Pennsylvania Dairymen’s Association, American Dairy Association North East, the Pennsylvania Dairy Promotion Program, agriculture partners, and business leaders to provide fresh milk to Pennsylvania families in need through Feeding Pennsylvania’s network of food banks. Cabot’s funding assists the Harry & Jeanette Weinberg Northeast Regional Food Bank with the purchase and delivery of enough fresh milk to support dozens of families in Susquehanna County. It is a heartwarming story. So imagine our surprise in reading a letter to the editor of the Scranton Times-Tribune from someone who doesn’t like Cabot donating milk to poor families…
    Read More “Anti Doesn’t Like Cabot O&G Donating Milk to Poor People in PA”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Wed, Mar 1, 2017

    March 1, 2017March 1, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Lawyer who helped Vorys start Pittsburgh office joins Steptoe & Johnson; propane tanks for schools questioned with natural gas nearby; Chesapeake Energy: Follow the yellow brick road; Chesapeake Energy: It’s going to be daunting; The oil and gas situation as of February 2017; and U.S. oil exports hit record levels.
    Read More “Marcellus & Utica Shale Story Links: Wed, Mar 1, 2017”

  • Accidents | Energy Companies | Industrywide Issues | Pennsylvania | Regulation | Westmoreland County | WPX Energy

    WPX Pays $1.2M Fine to Settle 2012 Case of Leaky PA Impoundment

    February 28, 2017February 28, 2017

    In July 2014, MDN told you the water wells for two of three families living near a WPX recycled frack wastewater impoundment (i.e. “pond”), near Ligonier (Westmoreland County), PA, were determined to have been contaminated by that impoundment. That is, the Kalp impoundment leaked into the ground, according to the PA Dept. of Environmental Protection (DEP), and that caused a long-term problem with those wells (see WPX Wastewater Impoundment Source of Water Contamination in W PA?, and our follow-up story, Important Update on WPX Energy Leaking Impoundment in SWPA). A month later the DEP later made a final determination that the third family’s well, the elderly Ken and Mildred Geary, was also affected and that WPX will need to find a permanent water replacement solution for them too (see DEP Says WPX Needs to Replace 3rd Water Supply in SW PA). From the beginning, WPX owned up to the problem and worked hard to make it right by installing water treatment systems–for five (total) affected water wells. The Pennsylvania Dept. of Environmental Protection (DEP) continues to monitor the water for the affected wells. However, the DEP is now ready to close the door on this now three year-old case, by assessing WPX with a $1.2 million fine and a requirement that they complete a remediation of soil in the area that may still be affected…
    Read More “WPX Pays $1.2M Fine to Settle 2012 Case of Leaky PA Impoundment”

  • Industrywide Issues | Regulation | Statewide WV | West Virginia

    WV Senate Bill 244 Introduced for Co-Tenancy & Joint Development

    February 28, 2017February 28, 2017

    The legislative session for West Virginia is in full swing–a session that lasts for 60 non-contiguous days at the beginning of each year. This year’s session opened on Jan. 11 and will conclude on Apr. 8th. As MDN previously reported, perhaps the biggest energy-related issue for this year’s session will NOT be (as it has in five previous sessions) a bill on forced pooling. Instead, the West Virginia Oil and Natural Gas Association (WVONGA) is pushing a legislation on co-tenancy and joint development (see WV Won’t Push Forced Pooling, Will Push Joint Dev. & Co-Tenancy). Senate Bill (SB) 244 has now been introduced to cover both co-tenancy and joint development. Co-tenancy is pretty easy to understand: if there are multiple owners for the mineral rights under a property–something that happens fairly regularly in WV–you would only need a simple majority of those owners to approve a drilling lease. Currently, if one person with a teeny tiny share objects, it stops the process. Joint development, on the other hand, had us stumped. But we got some insight into the issue from a couple of sharp MDN readers (see More on WV’s Push for “Joint Development” Instead of Forced Pooling). Currently there are a number of existing old leases, signed before shale drilling began, that prevents drillers from drilling a horizontal well across an individual property boundary line–until a new lease is signed. Joint development says if the driller already owns the leases on all adjoining properties they want to combine into a drilling unit, they can do so without signing a new lease. WVONGA says it corrects a loophole that prevents more drilling from happening. Rights owners say joint development legislation lets drillers have a freebie–instead of signing a new lease (for more money), the driller gets something never envisioned when the original lease was signed. Who’s right? We expect SB 244 to be hotly contested this year, like forced pooling has been in previous years…
    Read More “WV Senate Bill 244 Introduced for Co-Tenancy & Joint Development”

  • Enbridge | Energy Services | Industrywide Issues | M&A | Spectra Energy

    Spectra Energy is No More – $28B Merger with Enbridge Complete

    February 28, 2017February 28, 2017

    Last September MDN reported on a midstream deal with major implications for the Marcellus/Utica: Canadian pipeline operator Enbridge Inc. announced an all-stock deal to buy out pipeline operator Spectra Energy, based in Houston, for $28 billion (see Canadian Enbridge Buying US Spectra Energy for $28B). Spectra has a number of critical pipeline infrastructure projects under way or planned in the Marcellus/Utica region, including the planned Access Northeast pipeline to New England, the mighty NEXUS pipeline planned to span Ohio, the currently under construction Algonquin Incremental Marketing (AIM) pipeline project, and three projects (Access South, Adair Southwest and Lebanon Express) under way to expand one of the largest natural gas pipelines in the U.S. (and in the northeast)–the Texas Eastern Transmission (Tetco) pipeline. The update is that as of yesterday, Spectra Energy is no more. The merger is complete, and Spectra’s stock has stopped trading, and the name on the door has changed. Yes, this is a big, hairy deal for our region…
    Read More “Spectra Energy is No More – $28B Merger with Enbridge Complete”

  • Energy Companies | EQT Corp | Stone Energy | Tug Hill Operating

    Stone Energy Exits Bankruptcy, Sale of M-U Assets to EQT Finalized

    February 28, 2017February 28, 2017

    Stone Energy is an independent oil and natural gas exploration and production company (E&P) headquartered in Lafayette, Louisiana, drilling mainly in the Gulf of Mexico but also has (or rather had) a presence in the Marcellus/Utica Shale with 86,000 acres of leases. Stone quit actively drilling in the Marcellus in 2015, and filed for bankruptcy last October. As part of the bankruptcy filing, Stone signed a deal with Tug Hill to sell those 86,000 acres to Tug Hill for $350 million (see Stone Energy Enters Bankruptcy, Sells Marc/Utica Assets for $350M). The deal with Tug Hill was called a “stalking horse bid,” which meant Tug Hill would get the deal if no one else came along and bid higher. Someone did come along and bid higher–EQT (see EQT Wins Bankruptcy Auction for 86K Stone Energy M-U Acres, $527M). As of yesterday ownership for Stone’s 86K acres + wells was officially transferred to EQT. As of today, Stone is exiting bankruptcy. Now they have to pay Tug Hill a $10.8 million breakup fee…
    Read More “Stone Energy Exits Bankruptcy, Sale of M-U Assets to EQT Finalized”

  • Columbia Pipeline Group | Energy Services | Industrywide Issues | Pipelines | Regulation | TC Energy/TransCanada

    FERC Issues Favorable Enviro Report for Mountaineer & Gulf XPress

    February 28, 2017February 28, 2017

    In December, the Federal Energy Regulatory Commission (FERC) threw a little cold water on two important pipeline upgrades to carry more Marcellus/Utica gas to southern markets. A final environmental impact statement (EIS) was due from FERC for both the Mountaineer XPress and Gulf XPress projects no later than April 28, 2017. FERC said that the deadline would slip by three months due to reroutes and additional environment information requested (see FERC Delays EIS for Mountaineer XPress & Gulf XPress Pipelines). MDN previously reported on Mountaineer XPress, which includes 165 miles of new pipeline with approximately 2.7 billion cubic feet (Bcf) per day of transportation capacity from existing and future points of receipt along or near the Columbia pipeline system–most of it located in West Virginia (see Details on Columbia Pipeline Mountaineer XPress Pipeline Project). Gulf XPress consists of constructing seven new midpoint compressor stations along the existing Columbia pipeline system in Kentucky, Tennessee and Mississippi, with the aim of moving an additional 875 million cubic feet (MMcf) of Marcellus/Utica gas per day southward, to the Gulf Coast region. However, before FERC issues a final EIS for both projects, they must first issue a draft EIS (or DEIS)–which they did yesterday. The good news is that it was a favorable DEIS, signaling a favorable EIS will be issued by the end of April. The further good news is that FERC has scheduled five public hearings (four in WV and one in TN) for late March. We have FERC’s DEIS announcement below, along with a copy of the full DEIS (all 532 pages!)…
    Read More “FERC Issues Favorable Enviro Report for Mountaineer & Gulf XPress”

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